Illegal money-lenders are charging people in Longford town as much as 50 per cent a week, a local councillor has claimed. One person had to pay back £150 the week after she borrowed £100.
Cllr Alan Mitchell advised people not to pay such high charges, but to seek advice instead. Mr Mitchell, who is a solicitor, said while there were a number of licensed money-lenders in the county, there were about five other individuals who were operating illegally.
He urged anyone caught in the trap of borrowing from illegal money-lenders to seek advice from the Money Advice and Budgeting Service which was now operating in Longford town.
"People who are in difficulty can go there and get advice how to get themselves out of the trouble they now find themselves in," he said.
He said the rates being charged by illegal money-lenders were as high as 50 per cent a week, and it was not uncommon to hear of people having to pay back £150 for the £100 they had borrowed the week before.
These money-lenders, he said, were the lowest form of parasite imaginable because they preyed on the most vulnerable people in society.
He said many people felt they had nowhere else to turn except into the clutches of these money-lenders. It was very difficult to get away from them once they became caught up by borrowing.
He said threats and intimidation were used to ensure that the amounts borrowed and interest were paid back because these money-lenders could not use the courts because they were operating illegally.
"The rates the licensed operators are charging are also too high. They may be legal but they are impossible to meet for people without great resources," he said.
The Fine Gael councillor raised the matter of money-lending in the town and county late last year and since then, according to local Garda sources, there has been a clampdown on their activities.
A number of people who were believed to have been involved in the illegal business had moved out of the area or were not operating as before.